Inaugural address of  James H. Douglas  As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  2005 Thursday, January 6, 2005 Inaugural Address  Governor Douglas then presented the following remarks. “Mr. President, Madame Speaker, Mr. Chief Justice, Members of the General Assembly, distinguished guests, fellow Vermonters: “I  am  deeply  honored  to  stand  before  you  again  and  am  humbled  by  the  trust  placed  in me.   I  am  proud  to share  this  day  with  my  family  and  especially  my  loving  wife,  Dorothy,  and  I  thank  them  for  their  support throughout  the years.  I  also want  to  thank Lt. Governor Dubie  for his  friendship, his  leadership  and his  service to Vermont. “No person ever stands here alone.  Even as I rose  in  this chamber for  the first  time,  thirty-two years ago, as a  freshman  legislator,  and  raised  my  hand  to  take  the  oath  of  office,  I  stood  tall  on  the  shoulders  of  our ancestors.   “Our forbears are the men and women of Vermont who battled to cut a living from her hills.  From the tilled field and the ax swing came Vermonters’ reputation for rugged individualism, hard work and personal industry; from harvesting the autumn bounty, the easy generosity of having just enough and no more than you need; from the Sunday trips to town, the power of faith and the spirit of community. “Our  forbears  worked  hard  this  difficult  land,  and  their  reward  was  the  freedom  and  independence  of  self-sufficiency.  With this ethos, they charged their government to fill only the thin gaps left unfilled by community and family, recognizing, as they set forth in the Vermont Constitution, that “frequent recurrence to fundamental principles,  and  a  firm  adherence  to  justice,  moderation,  temperance,  industry  and  frugality,  are  absolutely necessary to preserve the blessings of liberty, and keep government free.” “I  am  lifted  by  the  many  things  we’ve  done  to  make  Vermont  better  and  stronger,  protecting  the  most vulnerable  while  enabling  individual  growth  and  preserving  essential  liberty.   In  the  last  two  years,  we’ve worked together to bring hope where there was fear and opportunity where there was loss.  “As  I am encouraged with our progress,  I know  the many  real challenges  that  face us and  the  steps we must take to meet them.  Programs that were once intended to fill the thin gaps have expanded far beyond our means.  We  must  take  action  to  curb  the  unbridled  growth  of  these  programs  and  return  them  to  their  most  vital purposes.  “This  is  a  task  that  will  affect  the  Vermont  we  want  a  generation  from  now.   It  will  set  a  course  for  the Vermont we will leave our children and grandchildren.   “I see a Vermont where every individual is joined with opportunity; where every person who wants a job has a  job;  where  dependence  on  government  is  not  a  way  of  life,  but  a  temporary  stop  on  the  road  to  self-sufficiency. “I  see  a  Vermont  where  every  family  is  joined  by  compassion;  where  parents  and  children  are  united  by understanding and unconditional love. “I  see  a Vermont where  every  community  is  joined by possibility; where caring hearts  reach out  to  troubled souls; where every child enters school ready to learn and leaves school prepared to prosper; where the dream of homeownership  is  within  reach  of  every  family;  where  the  grandeur  of  green  mountains  is  the  backdrop  for downtowns bustling with commerce. “And I see a Vermont where our government is joined in a common purpose, bound by the shared values that make our state so special. “Today, I ask you to join me in a common purpose.   “In  my  first  inaugural  message,  I  promised  to  initiate  positive  changes  that  would  begin  to  address  the challenges  that  faced  Vermont,  and  I  asked  for  the  cooperation  of  a  divided  legislature.   Together,  we  put progress  over  partisanship  and  accomplished much  for  the  people  of  our  state.   I  come  before  you  again  in  the spirit  of  bipartisanship,  asking  you  to  join  with  me  to  advance  our  common  goals  and  address  our  common challenges.   * * * “Our future success will be built on the solid foundation we’ve laid over the past two years.  “We made job creation a priority and our focus is paying off: more Vermonters are working and we have the lowest unemployment rate in the nation.   “For  the  first  time  in  many  years,  employers  see  that  Vermont  is  “open  for  business”  and  ready  to  be  a partner in creating jobs. “We rejected the idea that job growth comes at the expense of our environment.  Our permit reform measure brought  the  first  meaningful  changes  to  our  regulatory  system  in  thirty  years  and  did  so  while  affirming  the environmental  ethic Vermonters  cherish.  Our  third way  –  the Vermont Way  –  is working  and  our  economy  is growing again. “We’ve  made  state  government  a  leader  in  energy  conservation.   Through  better  fleet  management  and efficiency  measures  in  state  buildings,  we’ll  stop  hundreds  of  tons  of  pollutants  from  entering  the  atmosphere and  save  taxpayers  millions.   Our  energy  future  is  one  of  greater  conservation  and  efficiency,  and  we  will continue the robust dialogue on the diversity of alternative energy sources that best fit our state. “In  the  last  biennium,  we  made  a  historic  commitment  to  accelerate  the  clean  up  of  Vermont’s  lakes  and waterways.   Key  partners  in  our  Clean  and  Clear  initiative  are  the  stewards  of  Vermont’s  landscape  –  our farmers.   Every  sip  of  milk,  drop  of  syrup,  and  ear  of  corn  is  a  testament  to  their  hard  work  and  tenacity,  to which we all owe gratitude and thanks.  “The  General  Assembly  joined  me  in  an  unprecedented  effort  to  give  farmers  emergency  relief  in  a  dark hour.  The result is over one hundred family farms saved and many more lifted to financial security. “Other  unsung  environmental  stewards  are Vermont’s  hunters,  anglers,  and  trappers who  protect  the  values and traditions of outdoor sports in our state.  Last year, we started to treat the plague of lamprey that are marring our  fish.   In  the  coming  year,  we  must  address  the  thinning  deer  herd  to  maintain  the  vitality  of  hunting  in Vermont. “In  the  last  biennium,  we  reformed  Act  60  and  we  will  continue  to  bring  property  tax  relief  to  working Vermonters.  We  reaffirmed our  commitment  to  time-honored uses of  the  land and  the  industries  that  thrive on it. “Two  years  ago,  I  challenged  Vermont  to  confront  the  growing  problem  of  illegal  drug  use  among  our youth.  From all corners, the response was overwhelming and effects of our good work are being felt.   “Through  my  DETER  anti-drug  program,  the  General  Assembly  is  directing  more  resources  for  education, treatment,  enforcement  and  rehabilitation.  With  the  help  of  additional  troopers,  the  State  Police, working with sheriffs and local departments, are aggressively targeting out-of-state drug dealers and sending a message to the street that dealers are unwelcome in Vermont.   “Our  new  high  school  drug  counselors  are  reaching  the  at-risk  population  before  it’s  too  late  and  our specialists are helping addicts stay clean and rebuild their lives through expanded recovery programs around the state. “Several  months  ago,  I  had  the  opportunity  to  meet  with  three  women  at  our  new  in-patient  center  in Bradford.  They described their hard journey fighting addiction – the broken promises and bitter loneliness.  But they  spoke  of  the  treatment  center  as  someplace  different,  someplace where  they  could  finally  break  free  from the  cycle  of  dependence.   As  I  left,  one  of  the  women  said  to  me,  “For  the  first  time  in  my  life,  I  feel  like someone cares about me.”    “But  for  all  our  progress,  stories  of  grief  remain.   In  recent  months  it  has  not  been  splashed  across  the headlines – but the addicted still face the quiet struggle – and their families still endure the quiet heartbreak. We must  continue  our  fierce  commitment  to  getting  illegal  drugs  off  our  streets,  away  from  our  homes  and  out  of our lives.  * * * “I was proud to sign a true Megan’s Law for Vermont, a measure that established an online public registry of sex offenders so these violent criminals may no longer lurk anonymously in our neighborhoods.     “But there is more we must do to help protect women and children against sexual predators.  Vermont needs to enact a “civil commitment” law that ensures untreatable sex offenders are not released into the community to victimize again. * * * “With  all  the  challenges  before  us,  let  us  pause  to  reflect  on  tragedy  of  an  unthinkable magnitude  half way around the world.  Our thoughts and prayers go out to the victims and the families of the tsunami in South Asia. “Last  week,  I  had  the  solemn  honor  of  joining  more  than  a  thousand  firefighters  at  the  funeral  of  their colleague,  Ray  Davison,  a  great  man  and  a  great  innovator  in  the  fire  service.   His  passing  reminds  us  of  the men and women who are first on the scene to our everyday disasters – all of the firefighters, police officers, and emergency service workers – and the constant thanks we owe them. “Right now, many of those first responders are answering a different call.  They join their fellow Vermonters courageously serving our country and making our state proud in military operations around the world.  We give our  great  respect  and  deep  gratitude  to  all  of  these  soldiers  and  their  families  for  their  sacrifice  and  service  to our nation; and we remember those fallen and honor them for their courage and selflessness. “As these brave men and women fulfill their duty at home and abroad, it is our duty here to work together in common purpose to make the Vermont of their return even better than the Vermont they left behind. * * * “As  public  servants,  our  chief  responsibility  is  to  build  a  government  that  is  responsive  to  the  needs  of  the people who elect us  to  serve.  The  statement of priority of  these needs  is  the  state budget, and while  the details of  my  proposal  will  be  explained  later  this  month,  the  gravity  of  the  problem  –  many  years  in  the  making  – merits emphasis now. “Vermont  has  always  taken  pride  in  its  reputation  for  balanced  budgets,  stubbornly  adhered  to  as  a  top priority.    This  insistence  on  fiscal  responsibility  –  despite  being  the  only  state  in  the  union  without  a  legal requirement  for  balance  –  has  helped  Vermont  weather  difficult  financial  times  without  resorting  to  drastic measures required of other states.   “Only  rarely,  and  always  briefly  throughout  our  history,  has  that  insistence  on  financial  integrity  not prevailed.   In  those  instances when  it has not,  the steps  required  to  return  the state  to balance have always been less desirable than a steady allegiance to sustainability.  Although our budget is not yet out of balance, it is clear that that allegiance to sustainability has been breached and must be restored immediately. “There are many areas of the budget that are growing at unsustainable rates, chief among them the Medicaid program.  Nearly  one  in  four Vermonters  –  compared  to  the  national  average  of  one  in  seven  –  now  fall  under the umbrella of this social welfare program originally designed specifically for the poor, infirm and disabled.   “Today,  we  face  at  least  a  seventy  million  dollar  deficit  in  Medicaid.   Left  unrestrained,  the  very  next legislature,  in  the  very  next  biennium,  will  confront  a  deficit  of  almost  two  hundred  seventy  million  dollars  – over a quarter of a billion dollars. That’s an amount equivalent to twenty-five percent of our entire general fund budget.   “This  deficit  would  be  the  largest  in  Vermont  history.   It  threatens  our  fiscal  stability,  basic  economic  and health protections, and the already over-taxed Vermonter.  “To  eliminate  a  deficit  of  this  magnitude,  the  legislature  would  have  to  impose  draconian  tax  hikes  on working  people:  raising  personal  income  taxes  by  over  fifty  percent  or  nearly  doubling  the  sales  tax  or  almost quadrupling the gas tax.   “These tax hikes would destroy the foundation of our economy.  The fact is plain: we cannot, should not and must not tax our way out of this problem. “In the last biennium I proposed reforms that would have reduced this deficit and relieved its impact on other programs, but those reforms were rejected.  Now, we do not have the luxury of time. “It falls on us – all of us – to find a solution that will save Medicaid for future generations before it collapses under  the burden of  its own weight.   Getting  spending under control will  require  leadership,  and  I  am prepared to  provide  it.   A  solution  will  require  a  commitment  as  well  from  you,  the  legislature,  to  make  those  tough decisions required to put a responsible bill on my desk. “As you consider all of the other spending pressures you will surely face, including and especially additional health care spending, I ask you to tend to what we already have. I ask you to save Medicaid first.   “And  as  we  seek  a  balanced  budget,  it  is  important  to  acknowledge  that  we  did  not  get  in  this  situation because Vermonters are taxed too little; we’re here because government has spent too much. * * * “Already,  Vermont’s  working  families  pay  the  8th  highest  income  tax  rate  in  the  nation  and  have  the  12th highest  burden  of  state  and  local  taxes.   And  although  we  are  making  slow  progress  reducing  the  relative  tax burden,  it  is  still  too  high.  Besides  the  heavy  toll  high  taxes  take  on working  families,  a  high  tax  environment also contributes to a business climate that makes job creation and economic prosperity more difficult. “During  the  past  two  years,  we  took  many  steps  to  improve  Vermont’s  job  environment.   Our  robust recovery  has  resulted  in  strong  revenues  that  allowed  us  to  replenish  our  rainy  day  funds  and  get  Vermont  on solid  footing.   This  will  make  balancing  the  budget  for  the  coming  fiscal  year  easier  than  it  would  have  been, but it would be a serious mistake to reverse this progress by raising taxes now. “I challenge this legislature to deliver to me a fiscally responsible, balanced budget that does not raise the tax burden on the people of our state. “The  stakes are high, and  the pressure exerted on us will be  intense.  As we work  together  for  the benefit of all  Vermont,  special  interests  will  fight  fiercely.   They  will  speak  loudly,  stage  protests,  and  make  dire predictions.   But  if  we  fail  to  stand  firm,  the  eye  of  history  will  stare  far  more  sternly  on  us  than  any  special interest. * * * “Within the constraints of a balanced budget there is little room for new spending programs.   “That  is  why  I  have  proposed  affordable  health  care  reforms  that  will  move  us  toward  universal  health insurance coverage, bringing peace of mind and security to  thousands of uninsured Vermonters, while reducing the cost of health insurance for those who already have it, and employers who want to offer it to their workers. “Like  saving  Medicaid,  health  care  reform  is  an  issue  that  cannot  tolerate  delay.   Vermonters’  insurance premiums are swelling, prescription drug costs are rising, and small businesses and working families are having trouble  affording  the  care  they  need.  My  plan  for  health  care  reform  provides  concrete  steps  to  address  these concerns.   “The  plan  that  I  have  offered  is  built  around  five  fundamental  principles  to  which  any  comprehensive  plan must adhere. “Real health care reform must lower the cost of care for those Vermonters who are struggling to keep up. “Reform must be patient-centered and put decisions in the hands of patients and their doctors, not politicians and bureaucrats.   “Reform must increase choices and options of care. “Reform must be affordable for Vermonters and sustainable for state government. “And  real  reform  must  lower  the  cost  of  prescription  drugs  with  initiatives  at  both  the  national  and  state levels. “As  we  begin  this  new  biennium,  let  us  demonstrate  our  bipartisanship  by  crafting  together  a  drug reimportation bill that will not undermine our first-in-the-nation lawsuit against the FDA.     “At the same time, we must be honest with the people of Vermont: drug reimportation is at best a short-term fix – perhaps short-lived – and will not be a viable option for many Vermonters.  We must continue our fight for a national solution. “We  must  also  recognize  that  prescription  drugs  are  only  one  part  of  the  soaring  cost  of  health  care.   To fundamentally  lower costs, we need  to  take more  responsibility  for our own health.  That’s why  I will continue to push  for  innovative health care programs  like  the Chronic Care Initiative, Fit & Healthy Kids, and a Healthy Choices discount. “My plan for real health care reform is a starting point for this General Assembly. I know there will be other designs for new systems of care.  I look forward to an open and honest debate about their merits and their value. But the final product must meet the fundamental principles I’ve set forth and cover all aspects of reform. “Vermonters  cannot  wait  for  another  study,  another  year  where  premiums  continue  to  rise  and  care  moves out  of  reach.   I  ask  this  Legislature  to  act  thoughtfully  –  but  to  act  quickly  –  and  deliver  me  a  comprehensive and fiscally responsible health care reform package by adjournment this year. * * * “As the pace of our economy’s transition from a largely industrial base to a global information age quickens, we  must  continue  our  work  to  improve  our  infrastructure  and  empower  Vermonters  with  the  education  and skills they need to excel in the next generation of jobs. “To keep our economy moving forward, we must keep goods, people, and  ideas moving forward.  Repairing roads  and  bridges,  building  critical  transportation  arteries,  and  expanding  broadband  and  cell  coverage  must remain central to our job creation strategy. “We  need  to  remain  steadfast  in  our  commitment  to  improve  primary  and  secondary  education,  close  the performance gaps, and encourage innovative approaches and technologies that improve student achievement.   “Participants in today’s – and more importantly, tomorrow’s – economy must have opportunities to continue learning  and  upgrade  their  skills.   We  need  to  sustain  our  efforts  to  make  our  colleges  more  affordable  by improving our support of higher education.   “Everyone,  young  and  old,  must  have  access  to  the  knowledge  and  skills  to  participate  in  the  evolving economy.   That  is  why  I  am  proposing  that  we  place  an  even  greater  emphasis  on  skills  training  so  every working Vermonter can compete and succeed in the 21st Century.   “Working  together,  we  can  educate  and  inspire  a  workforce  that  is  second  to  none,  making  our  working families more secure and our communities more prosperous.   * * * “Vermonters are known not for their wealth of riches, but for their richness of spirit.   It is our strong-hearted independence and unforced kindness that defines us and our desire to make better that unites us.   “Our  urge  to  refine  –  to  smooth  the  roughhewn  and  find  natural  symmetry  –  is  elemental  to  the  soul  of Vermont.   We  carry  it  to  our  government  –  into  school  boards,  town  halls,  committee  rooms,  and  into  these chambers – with the noble ambition to make the bad good and the good better. “It has brought us together today. “As we consider the work before us, let us also consider how fortunate we are. “If, at the beginning, the Almighty gave to humanity a sliver of globe on which to carve a heaven on earth, it would  be  filled  with  verdant  hills  and  sparkling  lakes,  open  fields  and  forests  thick with  all  His majesty.   The joy of changing seasons would bless a people with a cycle of  life and  instill  in  them  the spirit of  freedom and a sense of unity. “And they would call it Vermont. “With a commitment  to cooperation and common sense, we’ve put Vermont back on  the path  to prosperity.  But  there  is  much  more  for  us  to  do,  and  Vermonters  expect,  demand  and  deserve  a  government  that  will continue to work together.   “And so  it has come down  to us:  two chambers solidly Democrat, and one man  loyally Republican,  to come together in the spirit of civic virtue.  “Guided  by  a  common  purpose,  bound  by  a  common  history,  with  a  genuine  desire  for  cooperation,  let  us today begin the march toward our common destiny. “Thank you.”